Components of the N cycle were studied at Hurley, UK, in 1985-87. In grass-clover (Lolium perenne and Trifolium repens) swards, grazed at three intensities, low total inputs of N were associated with low outputs and losses of N. Nevertheless, the flows (intake and excretion) of N through animals were substantial and gave rise, at the higher intensities of grazing, to an acceptably high agricultural output per hectare. This was considered evidence of a fast and efficient recycling of N between plants, animals and soil. The release of N to the environment (as nitrogenous gases and nitrate) was substantially less from the grass-clover swards than from a grass sward fertilized with 420 kg N/ha, and this was at the expense of only 20% loss in production. The mechanisms which might account for the high efficiency of utilization and recycling of N in grass-clover swards are discussed in the context of the balance of the supply of C and N to plant and soil biomasses under grazing. The results confirm that optimizing agricultural output in grass-clover swards has little adverse effect on the environment, but the importance to this end of sustaining a large proportion of N-deficient grass in grass-clover swards is emphasized.